On August 20, 2024, a federal judge struck down the Federal Trade Commission (FTC) rule that banned virtually all noncompete clauses. The rule, which was slated to apply as of September 4, 2024, will not take effect.
The court concluded that the FTC exceeded its authority when it issued the rule and that the rule itself was overbroad because it applied to all noncompete clauses rather than targeting those that were harmful.
We’ll post an alert if the rule is revived via additional legal hijinks.
The U.S. District Court’s decision in Ryan v. Federal Trade Commission was issued on August 20, 2024.
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